REG - Anglo Asian Mining - Expansion of flotation plant

Anglo Asian MiningAnnouncement

22/11/2022 07:00

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RNS Number : 1234H  Anglo Asian Mining PLC  22 November 2022

  22 November 2022

 

Anglo Asian Mining PLC

Expansion of flotation plant

Capacity will double from 80 to 160 tonnes per hour from Q3 2023

 

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, is pleased to announce the
start of an expansion of its flotation plant, which will be doubled in
capacity, and provide additional operational flexibility.

 

The expansion forms part of Anglo Asian's increase in throughput capacity to
process ore from new mines in the short and medium term. This will begin with
Zafar, which is due to commence production in H2 2023. It will support the
Company's ambition to become a mid-tier miner producing over 100,000 gold
equivalent ounces per annum.

 

The total cost of the expansion has been estimated at $2.5 million, which will
be paid from the Company's existing cash resources.

 

Reza Vaziri, Chief Executive Officer of Anglo Asian, commented:

"Anglo Asian is at the beginning of its next phase of growth, as we prepare to
bring a number of new mines into production. The development of our
medium-term growth strategy is well underway and we need to increase our
processing capabilities to accommodate additional ore production.

 

"This expansion is an important step in the Company's preparation for our new
mines entering production. The mine design at Zafar is well advanced and
production will commence in H2 2023. This increase in production capacity is a
critical part in enabling Anglo Asian to achieve mid-tier production status in
due course."

 

Details of the expansion of the flotation plant

Anglo Asian's flotation plant opened in 2015 to produce copper concentrate as
the Company was mining ore with increasing amounts of copper. The flotation
plant is located at its Gedabek site, next to its agitation leaching plant.
The plant currently contains six 50 cubic metre rougher/scavenger cells and
twelve 5 cubic metre cleaner cells, a thickener and a filter press. The plant
is fed ore crushed by a dedicated SAG mill and ball mill combination.

Maelgwyn Mineral Services will supply an additional three rougher/scavenger
cells and four cleaner cells. They use "Imhoflot" pneumatic flotation
technology, which requires less energy and offers better recoveries than
traditional tank cells and flotation columns. The cost of the new cells
including instrumentation and spares is approximately $1 million.

One Imhoflot cell has been under test at Gedabek since April 2022 and it has
produced excellent results. The additional flotation line will increase the
flexibility of the plant and enable the production of an intermediate copper
concentrate, followed by a final zinc concentrate as a by-product. The
crushing circuit of the current agitation leaching plant will be used to
provide the additional crushing capacity required for the expanded flotation
plant.

Yon İç Ve Dış Ticaret Pazarlama Limited Şirketih (a Turkish contractor)
will supply a new thickener and filter press for the new flotation line at a
cost of approximately $0.5 million. The only additional equipment required to
complete the installation will be pumps, electrical panels and some minor
ancillary items. The building housing the existing flotation line will also
require some modification, but no increase in size.

Note that all references to "$" are the United States dollars.

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014, which was incorporated into UK law by the European
Union (Withdrawal) Act 2018, until the release of this announcement.

 

For further information please contact:

 Reza Vaziri       Anglo Asian Mining plc          Tel: +994 12 596 3350
 Bill Morgan       Anglo Asian Mining plc          Tel: +994 502 910 400
 Stephen Westhead  Anglo Asian Mining plc          Tel: +994 502 916 894
 Ewan Leggat       SP Angel Corporate Finance LLP  Tel: +44 (0) 20 3470 0470

 Adam Cowl         Nominated Adviser and Broker
 Charlie Jack      Hudson Sandler                  Tel: +44(0) 20 7796 4133

 Harry Griffiths

 

Notes to Editors:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer
in Central Asia with a broad portfolio of production and exploration assets
in Azerbaijan. The Company produced 64,610 gold equivalent ounces ("GEOs")
for the year ended 31 December 2021.

 

In December 2021, the Company undertook a private placement which acquired
19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is
listed on the TSX Venture Exchange in Canada and owns, or has the option
to acquire, several copper exploration properties in North and South America,
including Mocoa in Colombia, one of the world's largest undeveloped
copper-molybdenum resources.

 

On 5 July 2022, the Parliament of Azerbaijan ratified amendments to the
Company's Production Sharing Agreement, which granted it legal title to three
additional concessions with a combined area of 882 square kilometres,
including the Garadagh porphyry copper deposit, with a Soviet classified
resource of over 300,000 tonnes of copper.

 

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